Polaris Industries Inc. shares rose 4 percent Thursday after its first-quarter profit rose more than expected and executives signaled they were tackling several problems that prevented an even bigger gain.
The performance was shaped by a jump in off-road vehicle sales and a near doubling of motorcycle sales.
The Medina-based company said it earned $88.6 million, or $1.30 a share, a penny better than the consensus forecast of investment analysts. A year ago, Polaris earned $80.9 million in the same period.
Revenue rose 16 percent to $1.03 billion.
Scott Wine, the company's chief executive, said Polaris outperformed competitors in most product segments, but he noted several problems that employees and managers are trying to solve.
"From factory inventory being too high to ongoing production inefficiencies, particularly in motorcycles, we did not perform to our capabilities or our expectations," Wine said in a statement.
Sales in Polaris' largest product category, off-road vehicles, rose 11 percent in the quarter compared with the year-ago period. Parts and accessories, its second-biggest category, rose 12 percent. Motorcycles, its third-biggest category, experienced a 74 percent jump in sales. Sales of snowmobiles fell 7 percent.
Polaris narrowed its guidance for full-year 2015 profit, saying it now expects earnings per share in a range of $7.27 to $7.42. Previously, it forecast 2015 earnings in a range of $7.22 to $7.42 per share. In 2014, the company earned $6.64 per share.
The company on Wednesday announced the purchase of Timbersled Products Inc., a closely held maker of snow bikes in Sandpoint, Idaho. Terms weren't disclosed. Polaris said it would keep the Timbersled brand.